H&R Block (NYSE:HRB) Shares Pass Above 200-Day Moving Average - What's Next?

Key Points

• H&R Block shares climbed above their 200-day moving average, reaching $45.24 and closing at $44.51, compared with a 200-day average of $38.97.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $46.67, with targets ranging from $33 to $60.
• The company exceeded quarterly earnings and revenue expectations and raised its quarterly dividend from $0.42 to $0.46 per share, producing a 4.1% annualized yield.

H&R Block, Inc. (NYSE:HRB - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $38.97 and traded as high as $45.24. H&R Block shares last traded at $44.51, with a volume of 1,775,671 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on HRB shares. Barrington Research raised their price target on H&R Block from $50.00 to $60.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. The Goldman Sachs Group upped their price objective on shares of H&R Block from $29.00 to $33.00 and gave the company a "sell" rating in a research note on Wednesday, August 12th. Stephens assumed coverage on shares of H&R Block in a report on Tuesday, July 28th. They set an "equal weight" rating and a $47.00 price objective on the stock. Zacks Research cut shares of H&R Block from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Weiss Ratings upgraded shares of H&R Block from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, H&R Block presently has an average rating of "Hold" and a consensus target price of $46.67.

H&R Block Trading Up 0.6%

The company has a debt-to-equity ratio of 12.69, a current ratio of 1.13 and a quick ratio of 1.13. The business's 50-day simple moving average is $47.06 and its two-hundred day simple moving average is $38.97. The stock has a market capitalization of $5.64 billion, a price-to-earnings ratio of 7.78, a PEG ratio of 0.58 and a beta of 0.36.

H&R Block (NYSE:HRB - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.17. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.12 billion. H&R Block had a net margin of 18.59% and a negative return on equity of 214.84%. The business's quarterly revenue was up 255.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.27 earnings per share. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. On average, research analysts anticipate that H&R Block, Inc. will post 6.11 earnings per share for the current fiscal year.

H&R Block Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Shareholders of record on Thursday, September 3rd will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 4.1%. This is a boost from H&R Block's previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Thursday, September 3rd. H&R Block's dividend payout ratio is 32.17%.

Institutional Investors Weigh In On H&R Block

Several institutional investors and hedge funds have recently modified their holdings of HRB. Amundi raised its holdings in shares of H&R Block by 2,344.4% during the 1st quarter. Amundi now owns 229,207 shares of the company's stock valued at $7,275,000 after buying an additional 219,830 shares during the period. Kendall Capital Management acquired a new position in H&R Block during the 2nd quarter worth approximately $2,018,000. Ceera Investments LLC boosted its holdings in H&R Block by 299.1% in the 1st quarter. Ceera Investments LLC now owns 42,228 shares of the company's stock worth $1,340,000 after acquiring an additional 31,648 shares during the period. Cygnus Capital Advisors LLC purchased a new position in H&R Block in the 2nd quarter worth approximately $1,853,000. Finally, Y Intercept Hong Kong Ltd acquired a new stake in H&R Block in the first quarter valued at approximately $1,523,000. Hedge funds and other institutional investors own 90.14% of the company's stock.

About H&R Block

H&R Block, Inc is a tax preparation and financial services company that helps individuals and small businesses meet their tax and financial needs. The company provides assisted tax preparation through a network of offices and remote professionals, as well as do-it-yourself tax filing tools through its online and software-based platforms.

In addition to tax preparation and filing, H&R Block offers tax-related products and services such as refund transfer options, tax identity protection, and banking services through third-party or affiliated offerings.

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